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IR Kel operating working capital) Tetious Dimensions is introducing a new product and has an expected change in net operating income of $790,000 Tetious Dimensions

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IR Kel operating working capital) Tetious Dimensions is introducing a new product and has an expected change in net operating income of $790,000 Tetious Dimensions has a 31 percent marginal tax rate. This project will also produce $185,000 of depreciation per year in addition, this project will cause the following changes in year 1 Without the Project With the Project Accounts receivable $53,000 586 000 Inventory 94,000 183.000 Accounts payable 69,000 125.000 (Click on the icon in order to copy its contents into a spreadsheet) What is the project's free cash flow in year 1? The free cash flow of the project in year 1 is (Round to the nearest dollar) Tevenues from new product innovations) Morten Food Products, Inc is a regional manufacturer of salty food snacks The firm competes directly with the national brands including Frito-Lay, but only in the US Southeast Last year Morten sold 5300 milion of its various chip products and hopes to increase its sales in the coming year by offering a new line of baked chips. The new product in is expected to generate $45 million in sales next year. However, the firm's analysts estimate that about 50 percent of these revenues will come from existing customers who switch their purchases from one of the firm's existing products to the new healthier baked chips a What level of incremental sates should the company analyst attribute to the new line of baked chips? 6. Assume that 15 percent of Morter's exsting customers are actively looking for a healthier snack alternative and will move to another company's baked chp offering Morten does not introduce the new product What level of incremental sales would you attribute to the new line of baked chips in this circumstance? a. The level of incremental sales that the company analyst should attribute to the new ine of baked chips is 22500000 (Round to the nearest dollar) b. If 15 percent of Morten's existing customers are actively looking for a healthier snack alternative and will move to another company's baked chip offering i Morten does not introduce the new product, the level of incremental sales that you would attribute to the new Ine of baked chips in this circumstance is $ (Round to the nearest dollar)

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